Benchmark indices closed lower on Tuesday amid late-hour selling. The market opened on a positive note, but the indices soon slipped into the red amid weak global cues and remained volatile through the day.

The benchmark indices closed around 1 per cent lower, witnessing selling pressure across counters.

The BSE Sensex closed at 60,754.86, down 554.05 points or 0.90 per cent, near the day’s low of 60,662.57. It recorded an intraday high of 61,475.15. The Nifty 50 closed at 18,113.05, down 195.05 points or 1.07 per cent. It recorded an intraday high of 18,350.95 and a low of 18,085.90.

Over 2200 stocks decline

The market breadth turned in favour of the decliners with 2,285 stocks declining on the BSE as against 1,145 that advanced, while 83 remained unchanged. Furthermore, 423 stocks hit the upper circuit as compared to 320 stocks that were locked in the lower circuit. Besides, 465 stocks touched a 52-week high and seven touched a 52-week low.

The volatility index rose 6.05 per cent to close at 17.78, singalling caution among investors..

Analysts expect volatility to continue ahead of the Budget presentation. Further, FIIs turning sellers yet again has also impacted market sentiment. 

Vinod Nair, Head of Research at Geojit Financial Services said, ”Following a weak lead from the global markets, domestic indices witnessed highly volatile trade ahead of the press conference by the Finance Minister today.”

Finance Minister Nirmala Sitharaman is to address a press conference at 4:30 pm today.

“The surge in oil prices and FIIs turning net sellers also added volatility in the domestic market. Globally, markets witnessed selling pressure following a surge in US treasury yield amid rate hike worries, while oil prices rose on supply tension, owing to the drone attack on the UAE,” Nair further added.

The 10-year Treasury yield rose five basis points to a two-year high of 1.82 per cent, while the two-year yield crossed 1 per cent. 

According to Rahul Sharma - co-owner, Equity 99, “The correction might continue for some time now with minor profit-booking seen with the Budget nearing. Investors should take advantage of this fall to add quality counters on major dips.” Axis Bank, ICICI Bank, HDFC Bank, Dr Reddy and Nestle India were the top gainers on the Nifty 50, while Maruti, Tata Consumer, Ultratech Cement, Eicher Motor and Grasim were the top laggards.

Ajit Mishra, VP - Research, Religare Broking Ltd said, “Mixed global cues were weighing on sentiment, which triggered profit-taking across the board.”

According to Mishra, the market may see a further decline in the Nifty Index.

“Volatility usually remains high during the corrective phase and the earnings season is further adding to the choppiness. Keeping in mind the scenario, it’s prudent to maintain a few shorts also. The focus should be on earnings and global markets for cues,” Mishra said.

All in red

All sectoral indices closed in the red, with realty, auto and metal recording the highest losses.

Nifty Realty was down 2.6 per cent at closing. Nifty Auto and Nifty Metal each closed over 2 per cent lower. Nifty IT, Nifty healthcare Index and nifty PSU Bank were down around 1.8 per cent each.

Nifty Consumer Durables, Nifty FMCG and Nifty Pharma closed over 1 per cent lower each.

Midcaps, smallcaps under pressure

The broader market also witnessed selling pressure with broader indices closing in the red.

The Nifty Midcap 50 was down 2.28 per cent, while the Nifty Smallcap 50 was down 2.40 per cent. The S&P BSE Midcap was down 2.20 per cent, while the S&P BSE Smallcap was down 0.92 per cent.

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